Business

Strong KFC sales in China lift profits at Yum Foods

KFC branch in Beijing
Image caption KFC continues to be a popular food choice in China

Profits at KFC owner Yum Brands have risen 10% thanks to another big rise in sales at its Chinese outlets.

The fast food giant's net profit for the three months to 11 June was $316m (£196m), up from $286m a year earlier.

Like-for-like sales at its Chinese outlets grew 18% in the three months to 30 April. China now accounts for more than 40% of Yum's profits.

The increase in same-store sales in China offset a decline in the US, where they fell 5% at KFC.

Sales were also lower at the US branches of Yum's two other main brands, Taco Bell and Pizza Hut.

Yum has more than 4,000 outlets in China, mostly KFC restaurants, making it the largest Western fast food company in the country.

Yum now expects its full-year profits to increase by 12%, up from its previous target of 10% growth, despite the continuing impact of higher wages and commodity prices in China.

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